BECKY QUICK: You are taking me actually and stepping away from the actual story right here, which is form of this disagreement between you and Charlie and Elon. And I simply need — do you even know Elon Musk?
WARREN BUFFETT: I’ve by no means mentioned something to anybody about Elon. I imply, you recognize — you are baiting me slightly bit to do it, however —
BECKY QUICK: I’m.
WARREN BUFFETT: However I’ve by no means — you recognize, I — folks like his automobile and every little thing, however —
However any person talked about that now he is speaking about financing. One thing this morning about that. I assumed I heard that earlier.
BECKY QUICK: Sure. Properly, truly, Warren — Andrew simply learn some headlines the place it regarded like they might be — Tesla — could also be going again to market to choose up some extra financing. I am not totally certain.
WARREN BUFFETT: Properly that is —
BECKY QUICK: All I heard was the — all I heard was the headline.
WARREN BUFFETT: That is what I name a counter-revelation. I imply — (laughs) — you recognize, as a result of I feel it was just some days in the past they mentioned they would not want financing. It —
However, you recognize, he is making an attempt one thing to enhance a product. And I salute him for that. And the American public will determine whether or not it is a success. And — it isn’t simple. You realize? So rather a lot —
It is in all probability simpler to develop a brand new automobile than it’s to compete with Snickers.
However some merchandise have terrific moats, you recognize. In all probability Elmer’s Glue does. You realize, WD-40. I imply, there you go.
You may — there’s simply sure issues that you’re not in — a lot inclined to be dissatisfied with and search — and I might say that, by the way, that the iPhone, you recognize, has a terrific moat.
I imply, those that have an iPhone — or perhaps have another telephone. However they wish to proceed with the product that they have. They need the brand new model. It is simply simpler for them. They’ve discovered the way to do every little thing, and their life’s constructed round it, and all of that, and —
Moats are very helpful.
Costco has a moat in folks’s thoughts. I imply, you recognize —
Amazon can elevate the value of Prime, you recognize, 20 %. And you may’t do this until you’ve got constructed one thing inside that picture of the Amazon Prime, that is primarily based on actuality, that you will get rather a lot on your cash and you are going to wish to use it. After which you possibly can elevate costs $20.
However in the event you’re promoting, you recognize, in the event you’re promoting some commodity product, you possibly can’t do this. You want a moat.
